Case Law Details
CIT TDS Vs Mewar Hospital Pvt Ltd (Rajasthan High Court)
Before proceeding with the matter, it will not be out of place to mention that the assessee is running a hospital within State of Rajasthan and they have entered agreement with three different doctors. The question which came up for our consideration is whether benefit of 194J and 192 is to be given where TDS is required to deducted.
Counsel for the appellant rightly contended that in the agreement which was entered between the parties, there is no restriction of private practice whereas in case of service/appointment order, there is prohibition for grant of benefit which are required to be given under the law and are granted to the employees whereas in the case of retainership it is only an honorary or professional agreement is entered between the parties which may be analogous to the major service conditions but both the contract are different. One is contract as an employee and the other contract is service for honorary or expert service not as a employee which was entered between the parties. Therefore, question which came for our consideration is whether payment which was made to the professional is salary or professional fees.
Again same question came up for consideration in other decision of Karnataka High Court where after considering the judgment in Elbit Medical Diagnostics Ltd., the Court has come to the conclusion that retainer in service are professional service and issue was answered in favour of the assessee.
Taking into consideration the evidence on record, only one view taken by the Tribunal is also contrary, it two views are possible, the view much which in favour of assessee is to be taken and in view thereof in the present case, the issues are answered in favour of the assessee and against the Department.
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